Range unveils reserves upgrade

Range Resources (RRL) boasted a 490% increase in its proved reserves in Trinidad as it published its quarterly activities report for December 2011.

The upgrade included reserves identified following the completion of engineering work on the secondary recovery potential of the company's Beach Marcelle block in Trinidad. However, it did not include results from the development drilling program at North Chapman Ranch in Texas, recent extensions to the Morne Diablo field in Trinidad or the exploration potential associated with the Herrera formation.

Over all its Trinidad and Texas assets, Range holds 42.5 million barrels of oil and 30.9 billion cubic feet of gas, net of government and overriding royalties.

The company also took the opportunity to provide an update on the Beach Marcelle block, which is estimated to hold proved reserves of 12.8 million barrels of oil.

Additionally, an engineering review confirmed that significant volumes of crude in the field are expected to be recoverable using standard secondary recovery techniques such as water flooding. The proposed water flood programme has been engineered to produce between one million and 1.5 million barrels per year for the first eight years following initial production and has an attributable valuation of approximately $290 million (£183.8 million).

"Range, through its wholly-owned subsidiary Los Bajos Oil Limited, will seek all necessary approvals to commence development in early 2012 and commit to a $12 million development program over the next 12 to 18 months," the company said.

However, it should be noted that under the incremental production service contract, in-ground reserves belong to Petrotrin.

The managing director of Range Resources discusses operations in Trinidad, Georgia, Puntland, future sale of Texan assets and the purchase of new assets in: Your questions answered by Peter Landau.